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Avoiding late fees on Credit Cards is crucial for maintaining financial health and a good credit score. Late fees can accumulate quickly, leading to significant financial strain. By implementing effective strategies, you can ensure timely payments and avoid Credit Card late payments, thus keeping your finances in check and your credit score intact.
How to avoid late fees on Credit Card
1. Set up payment reminders
A simple method to avoid late fees is by setting up payment reminders. You can use your Credit Card issuer’s website, a mobile app or a third-party service like Google Calendar. Regular reminders help you stay on top of your finances and avoid unnecessary charges. It's a proactive way to manage your Credit Card payments efficiently.
2. Consider automatic payments
Automatic payments can be a lifesaver if you want to avoid late fees on Credit Cards. By setting up automatic payments, you eliminate the need to remember payment dates and reduce the risk of missing one. However, it's crucial to ensure that you have sufficient funds to cover the automatic payments to avoid penalties.
3. Review your statement regularly
Regularly reviewing your Credit Card statement helps you stay informed about your payment due date and any outstanding balances. It allows you to spot errors or unauthorised charges, which you can dispute with your Credit Card issuer. Staying vigilant helps you avoid late fees by keeping track of due dates and amounts.
4. Pay the full amount due
While paying the minimum amount can prevent late fees, it often results in high-interest charges and debt accumulation over time. Aim to pay more than the minimum amount whenever possible, if not all of the outstanding balance. This helps you reduce your debt faster and saves you money on Credit Card interest rates in the long run.
5. EMI options
If you find it challenging to pay your Credit Card bill in full, consider converting your outstanding balance into EMIs. Many Credit Card issuers allow you to pay off your debt in manageable monthly instalments with lower rates than standard Credit Card interest rates. This can help you avoid late fees and better manage your finances.
Also Read: Uncovering hidden fees: A simple guide to Credit Card charges
Conclusion
By setting up payment reminders, considering automatic payments, regularly reviewing billing statements, being mindful of due dates and paying more than the minimum amount due, you can manage your Credit Card payments effectively.
Axis Bank offers a range of Credit Cards tailored to your needs. You can enjoy numerous discounts and cashback on various categories, including travel and dining. Depending on the card you select, you may also get welcome benefits and airport lounge access.
Disclaimer:This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.
